Legal Question in Construction Law in California
Breach of contract and termination
Hello I'm a contractor. I signed up a contract with a homeowner to do a remodeling. During the construction process the homeowners stopped the construction process in the middle because they didn't like how it looked until an engineer came and said that everything had been done correctly. However, everything was stopped for a week. The homeowners kept constantly delaying payments and asked for changes that were not on the plans. The last straw was the moment when the homeowner didn't issue the payment as promised. Hence I called my workers off considering that unacceptable. The homeowner had issued some payments for materials according to my payment schedule, but the materials were not ordered because he didn't pay me for the things I had completed and started. He wants his money back, and I want my money for the things I have completed and loss of profit. According to the contract with me and the homeowner there is an arbitration in case of a dispute, but I'm trying to come to a mutual consent. But it doesn't look it is going to happen because I sent him a settlement agreement which protects me, all lines that gave me protection were removed and now he wants me to sign it. What are my options vs the homeowner?
3 Answers from Attorneys
Re: Breach of contract and termination
Are you saying you already removed the mechanics liens? If you can not agree to the settlement agreement language and terms, then you have no agreement. Release and settlement agreement language is standard across the board with slight difference depending on the type of case involved, construction vs. employment law, etc... Without seeing the agreement language, it is difficult to know which party is being unreasonable. Visit me at www.lawbarron.com or reply to: [email protected]
Re: Breach of contract and termination
Options: settle or get involved in litigation. Either resolve it yourself, or hire an attorney to help insure it is done right, one way or the other. If this is in SoCal and you're serious about doing so, feel free to contact me.
Re: Breach of contract and termination
Initially, you may need to go to arbitration and demand quantum meruit, meaning payment for services rendered. Does your contract allow you to place a lien on the property? Have you done so? Have you provided the homeowner with an itemized bill showing the payment that you mentioned (for materials) went to payment for past services?
I would certainly not sign any settlement that the homeowner lined through without having an attorney read through it. The last thing you need is for them to get you on the hook for anything.
It sounds like you also have a great case for breach of contract. Especially since the homeowner sounds like they wanted an engineers "ok" before allowing you to continue. (Did you continue after that or not...it is unclear). Odd that they did not like how it "looked" but then were ok after an engineer gave approval; it really sounds like they are just trying to find a way out of your contract.
If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided by LawGuru or through our firm�s website located at PasadenaEstatePlanning.com
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